If you would like an email sent to you when I update the blog please send an email with "subscribe" in the subject line to traderbob58@gmail.com. To be removed use "unsubscribe".

Search This Blog or Web

Thursday, September 8, 2016

Daily update 9/8


Still no upside follow through from Tuesday.  Breadth was -54%.  New highs dropped considerably to 174.  Bulls are not exactly tripping over themselves to buy here.  The market found its high and low this morning.  The afternoon was spent forming a small triangle indicating decreasing volatility.  As if volatility could actually get any lower.

What a narrow range.  The endless nothing.

The bulls had a chance to seize the day when the green count crossed 50, but they dropped the ball. 

I  cannot find such a long narrow range pattern in the last 30 years on SPX.  This is a very, very odd pattern for the SPX daily chart in today's world.  We will only know if there is some important meaning in hindsight.  We see this kind of pattern intraday sometimes.  Usually when it is a continuation pattern there is a false break out first the wrong way.  Sometimes that break out gathers moss and the trading range turns into a reversal pattern.  I suspect to get the market moving again price will end up breaking below this trading range.  Then either the bulls will come stampeding in or people start bailing like mad. Until we break out/down the beach looks like a good place to be.


No comments:


The information in this blog is provided for educational purposes only and is not to be construed as investment advice.